Myths, hype and the buy-to-let market

Rents have softened and the new real estate catchwords are stability and growth, writes Douglas Dalby

IT has been a staple on the menu of conversation at many a dinner party up and down the country for the past few years. Somebody has a friend who knows somebody who released some equity in their home, bought a run-down apartment in a city centre area a few years ago, let it out and is about to enjoy a lucrative early retirement from the proceeds.

While not entirely an urban myth, this species of canny amateur property investor is scarcer than those who talk up the market would have us believe.

“In 2003 there were a lot of non-traditional investors who normally wouldn’t have been dabbling, but most of this kind of money is now going overseas,” said Ronan Morris, the chief commercial officer of Mortgage Business Solutions. “In the past year the professionals have moved back in and are hunting out value — but there is still plenty